Five 401(k) Mistakes

July 1st, 2008  |  Published in 401K  |  Comments Off on Five 401(k) Mistakes

No matter who takes a crack at 401(k) mistakes, they invariably come up with the same advice over and over again. That’s not to say it’s not worth reading, it definitely is, but it shows that the basics of how to take advantage of a 401(k) are easy and simply bear repeating.

The latest 401(k) mistake post is by Lauren Tara LaCapra at Main Street, a personal finance blog by TheStreet.com. This post is slightly different from your standard 401(k) mistake post because it actually points out a few mistakes that, while aren’t absolutely drop dead critical, are certainly important and not echoed elsewhere (at least not often).

Going beyond the standard don’t withdraw early, don’t pay penalties, and contribute more, Lauren adds that you need to keep your paperwork in order. “Participants who don’t inform former employers about their relocation could lose out if the company is unable to locate them when it comes time to distribute benefits. Van Fleet says this happens to a “surprising” number of people, when a simple change-of-address card could have kept thousands in their retirement coffers.”